Provisions on supports for SMEs brought into law

Supports for small- and medium-sized enterprises (SMEs) would be considered a key task in the country’s socio-economic development policies, according to the draft law on supports for SMEs recently submitted by the Ministry of Planning and Investment to the Government.

Minister of Planning and Investment Nguyen Chi Dung said the draft law is designed to concretize the Party’s line, viewpoints and policies on development of the private sector and SMEs as well.

With 47 articles arranged in six chapters, the draft aims to formulate policies and programs in a selective manner to support SMEs as suitable to the nation's economic development objectives and orientationsy, competitive advantages of every locality and the country, and resources available in each period.

The draft requires that supports for SMEs would be provided according to market rules, without practicing discrimination or violating treaties to which Vietnam is a contracting party.

The draft has two important parts, with the first one focusing on fundamental and essential supports which would be provided for all SMEs through neither financial supports nor subsidies but implementation of mechanisms and policies, in order to assist intermediary organizations and enterprises in providing SME assistance services.

The second part touches upon three support programs and other programs designed to provide supports that serve the change of the growth model and economic restructuring, thus raising the competitiveness and autonomy of the economy.

Supports would also be given to build capacity of agencies and organizations that support SMEs; enhance the effectiveness of coordinating, building, implementing, monitoring and evaluating support activities; and create a legal framework to mobilize the private sector as well as organizations and individuals at home and abroad to join hands with the Government in providing supports for SMEs.

Also, resources would be prioritized for innovative startups, production and processing SMEs, and enterprises transformed from business households.- (VLLF)